Forecast Growth of Champagne Market to be Comparatively Healthy, Finds Euromonitor International

27 Apr 2012 • by Natalie Aster

Champagne’s direct correlation to economic dynamics has historically proven to be a double-edged sword. The category mirrors the state of economies and, at the same time, its narrow focus on Western markets increases downside risks in the case of a crisis. As dark clouds of fresh financial turmoil are gathering, will champagne’s sparkle shield the category from a perfect storm of extreme discounting, other sparkling wine’s cannibalising advance and the Champagne region’s traditionalism?

According to the report “Champagne and Issues Bubbling Under the Surface” by Euromonitor International, extreme discounting and the cannibalising effect of the advancing other sparkling wine segment are undercutting champagne’s positioning and value sales, and will continue applying pressure in the short to medium term, while financial volatility continues to be a concern.

The category is relatively consolidated when compared to wine overall, but highly fragmented in comparison to beer. Smaller producers may get a respite from cost pressures on the back of increased interest in “growers’ champagne”.

Forecast growth is expected to be comparatively healthy, at least if downside risks do not materialise. Green initiatives, growers’ champagne, a shift in regional focus, library releases and innovation initiatives will make the real difference moving forward.